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kow [346]
3 years ago
5

Warren Company has taken a position in its tax return to claim a tax credit of $30 million (direct reduction in taxes payable) a

nd has determined that its sustainability is "more likely than not," based on its technical merits. The tax credit would be a direct reduction in current taxes payable. Warren believes the likelihood that a $30 million, $18 million, or $6 million tax benefit will be sustained is 25%, 30%, and 45%, respectively. Warren's taxable income is $255 million for the year. Its effective tax rate is 40%. Warren's income tax expense for the year is?
A) $12 million.
B) $72 million.
C) $84 million.
D) $102 million.
Business
1 answer:
olga_2 [115]3 years ago
8 0

Answer:

C) $84 million

Explanation:

Given that:

Taxable income = $255 million

Tax credit = $30 million

Tax rate = 40% = 0.4

Therefore, Tax payable = (Tax income × Tax rate) - Tax credit = ($255 million × 0.4) - $30 million tax credit = $72 million.

Since  Warren believes the likelihood that a $30 million is sustained is 25%, and the likelihood that an $18 million is sustained is 30%, the total likelihood = (25% + 35% = 55% > 50%)

Therefore the liability for uncertain tax positions = $30 million - $18 million = $12 million.

Warrens income tax expense for the year = Tax payable +  uncertain tax positions = $72 million + $12 million = $84 million.

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In a perfectly competitive market, a firm's short-run supply curve is:_________.
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Answer:

B

Explanation:

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Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices. T
sergejj [24]

These are all characteristics of Integrated cost leadership/differentiation following business-level strategies.

<u>Explanation:</u>

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7 0
4 years ago
There is often only one major league baseball team in a city. What is the consequence of this in terms of ticket prices? a. Tick
Papessa [141]

Answer:

b. Ticket prices will be higher because each team is a monopoly in the city. 

Explanation:

A monopoly is when there is only one firm operating in an industry. Monopoly usually have market power. They have the ability to set market prices. They usually earn economic profit in the long and short run.

Monopolies are not faced with any competition because they are the only firms operating in an industry.

Because there are usually only one major league in each town, the teams are monopolies, they have the ability to set high prices and do not face competition.

I hope my answer helps you

8 0
4 years ago
You manage an equity fund with an expected risk premium of 12.4% and a standard deviation of 38%. The rate on Treasury bills is
timama [110]
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  • The standard deviation = 22.8 %.

<u>Explanation</u>:

On the client's portfolio (total investment = 120 K + 80 K = 200 K,  

  • The expected return

                    = (12.4 %risk premium + 5.4 %risk free return) \times (120 K / 200 K) + 5.4 % \times (80 K / 200 K)

                    = 17.8 % \times 0.6 + 5.4 % \times 0.4

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  • The standard deviation would be = 38 % \times 0.6 + 0% \times 0.4

                                                                  = 22.8 %.

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3 years ago
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pav-90 [236]

Answer:

(B) Inform.

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Most business messages achieve nothing more than to inform. They explain procedures, announce meetings, answer questions, and transmit findings. Some however, are meant to persuade and that is by selling out products, increasing the morale of employees, convincing managers and gaining more customers. But most is still to inform as they announce meetings, answer questions, and transmit findings and these are called informative messages.

5 0
4 years ago
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